"This is unlocking an opportunity for landlords to develop their ex-Bunnings freeholds into what often is a higher return."

Parry says Bunnings' need to compete with other hardware businesses like Masters is opening the door for new developments.

"The Sunbury Showroom development has proven to be a strong case study for retail repositioning, with Bunnings targeting larger footprints as part of the hardware race against Masters Home Improvement. This is leaving some of the older, smaller warehouses behind."

The Sunbury Showrooms at 85 Vineyard Road is a former Bunnings warehouse comprising 5,544sqm, now home to leading national retailers including The Good Guys, Total Tools, Repco and Godfreys.

Parry says the Sunbury area was an emerging destination for hardware retailers following Bunnings' departure.

"Bunnings relocated to the opposite side of the street, committing to approximately 13,000sqm, which further strengthens the precinct as a large format retail destination for Sunbury and the surrounds," Parry says.

"The subject property enjoys an estimated catchment of approximately 85,000 people, which has a large format retail spend 11 per cent higher than the Australian average and 8 per cent higher than the Melbourne average.

Similar projects are currently underway in Maribyrong, where a number of retailers are moving into a former Bunnings warehouse.

CBRE is also pre-leasing the former Bunnings in Burleigh Heads, Queensland, which is also undergoing a repositioning.

Ultimately, Parry believes this is just the beginning of a huge trend nationally.

"With Bunnings expanding its footprint across Australia, we envisage there will only be more opportunities such as this in the growing large format sector," he says.

"This trend is evidence of retailers capitalising on growth in the hardware sector, with the repositioning of these stores unlocking significant value for retailers."